XM Trading: Trading Terms Difference Between Balance and Credit


Beginners who have just started Forex may sometimes not understand the meaning of terms while trading. When you started trading on MT4/MT5, you may have wondered, “What is credit?” and “What is the difference between balance and credit?” When you start using it, you may be in trouble because you don’t understand the meaning of the notation, so I’m writing an article about the difference.

What is balance?

balance refers to the balance. The balance is written on the smartphone app, and the balance is written on the computer, but this indicates the current balance of the trading account. What is included in the balance of XM is the total amount of the funds deposited to XM by yourself + profits obtained from trading with XM + XM points + bonus amount. Your balance will not change while you have a position and will be reflected after you close your position.

What are credits?

It is a bonus that it is written as credit on the smartphone app and credit on the computer. XM has numerous bonuses. XM’s account opening bonus and XM’s deposit bonus are exactly that. The full amount including these and XMP will be credited. Unlike balances, credits cannot be withdrawn. It cannot be withdrawn, but it can be used as margin for trading.

Trade with credit and balance

In actual trading, you can trade with the full amount of credit and the full amount of balance as collateral. XM is very convenient because you can trade even if your balance is zero, as long as you have credit. If you want to try trading with XM, it is convenient to be able to trade even if you cannot deposit immediately.

If the balance of XM becomes negative, the negative amount will be compensated with credit if there is credit remaining. If there is no credit left, the zero cut system without additional call will be executed, and the balance will be automatically reset to zero at the next deposit or after a certain period of time.

Withdraw credit and balance

In XM, credit is a non-withdrawable fund used only for XM transactions, and the balance is a withdrawable fund. There is a point to be aware of when withdrawing the balance at XM, and if you withdraw from the balance, the credit will disappear according to the percentage of the withdrawal amount. Please be very careful when withdrawing money from your balance while you still have credit.

How XM balances and credits work

XM balances and credits are used in the following ways.

Transactions use balance first

For XM transactions, if you have both balance and credit, balance will be used first. Even if you deposit to XM and receive a deposit bonus, the deposit will be consumed while there is a balance, and the bonus will be used after the balance is exhausted.

Can only be traded on credit

At XM, you can trade using only credits, even if your balance is 0. In other words, even if you have no balance, you can trade as long as you have credit. The safest bet is to trade with credit until it runs out and then deposit after it reaches zero.

Credits decrease when you withdraw your balance

When you withdraw with XM, some credits will disappear according to the withdrawal ratio. Therefore, it is better not to withdraw funds easily while there are credits remaining. Please think carefully before withdrawing.

If you transfer funds between accounts, the bonus will also increase or decrease.

In XM, when transferring funds between multiple accounts, the credit will fluctuate according to the transfer ratio of the balance. Since the credit is only for the balance, it is designed to increase or decrease when the balance changes.

When the account becomes dormant or frozen

At XM, if there is no activity such as trading or depositing for 90 days, it will become a dormant account. When the account becomes dormant and the balance reaches zero, the account becomes a frozen account and cannot be used. Regarding credit, it will be extinguished when the account becomes dormant.

The bonus once expired cannot be revived. If you do not trade with XM for a while, take measures such as withdrawing your balance.

You can trade on credit without making a deposit

When you open an account with XM, you will receive a bonus. You can actually trade using credits, so you can trade for free. This is the recommended way to experience XM trading. If the transaction goes well, it will be credited to the “balance” as a profit, so let’s use it as a fund for the transaction.


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